Suppose Malaysia's production possibilities include a maximum of 80 units of rice or 120 units of lumber, and Canada's production possibilities include a maximum of 80 units of rice or 40 units of lumber.  Then suppose each country initially allocates 50% of its labor to producing each product. a) Total production by the two countries equals 80 tons of rice and 80 ft3 of lumber. b) Now suppose that Malaysia increases the labor it allocates to lumber by 10%.  Its lumber production rises by 12 and its rice production falls by 8 . c) If Canada reallocates its labor to increase its rice production by exactly the amount that Malaysia's rice production fell, by how much must its lumber production fall?    ??? ft3 d) State the combined effects on total production of the reallocations in part b and c. Total production of rice changes by 0 tons.  (include a negative sign, if needed) Total production of lumber changes by ??? ft3.  (include a negative sign, if needed)

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I need the answer for part C and the second part of D. 

Instructions: Manipulate numbers in the Settings window as needed to answer the following questions.  You may find it helpful to click "combined" above the graph  window to view each country's production on a single graph.

Suppose Malaysia's production possibilities include a maximum of 80 units of rice or 120 units of lumber, and Canada's production possibilities include a maximum of 80 units of rice or 40 units of lumber.  Then suppose each country initially allocates 50% of its labor to producing each product.

a) Total production by the two countries equals 80 tons of rice and 80 ft3 of lumber.

b) Now suppose that Malaysia increases the labor it allocates to lumber by 10%.  Its lumber production rises by 12 and its rice production falls by 8 .

c) If Canada reallocates its labor to increase its rice production by exactly the amount that Malaysia's rice production fell, by how much must its lumber production fall?    ??? ft3

d) State the combined effects on total production of the reallocations in part b and c.

Total production of rice changes by 0 tons.  (include a negative sign, if needed)

Total production of lumber changes by ??? ft3.  (include a negative sign, if needed)

The image presents two production possibility frontiers (PPFs) for Malaysia and Canada, comparing their production capabilities for lumber and rice.

**Malaysia's Graph:**

- The vertical axis represents the amount of Lumber, with a maximum value of 280 units.
- The horizontal axis represents the amount of Rice, with a maximum value of 70 units.
- The PPF is represented by a purple line, indicating the trade-off between producing Lumber and Rice.
- Point A (35, 140) is marked, showing a specific production scenario where Malaysia produces 35 units of Rice and 140 units of Lumber.

**Canada's Graph:**

- The vertical axis represents the amount of Lumber, with a maximum value of 100 units.
- The horizontal axis represents the amount of Rice, with a maximum value of 300 units.
- The PPF is represented by a green line, indicating the trade-off between producing Lumber and Rice.
- Point B (150, 50) is marked, showing a specific production scenario where Canada produces 150 units of Rice and 50 units of Lumber.

These graphs illustrate the concept of opportunity cost and how each country allocates its resources for producing two different goods, providing insights into potential advantages and strategic decisions in trade.
Transcribed Image Text:The image presents two production possibility frontiers (PPFs) for Malaysia and Canada, comparing their production capabilities for lumber and rice. **Malaysia's Graph:** - The vertical axis represents the amount of Lumber, with a maximum value of 280 units. - The horizontal axis represents the amount of Rice, with a maximum value of 70 units. - The PPF is represented by a purple line, indicating the trade-off between producing Lumber and Rice. - Point A (35, 140) is marked, showing a specific production scenario where Malaysia produces 35 units of Rice and 140 units of Lumber. **Canada's Graph:** - The vertical axis represents the amount of Lumber, with a maximum value of 100 units. - The horizontal axis represents the amount of Rice, with a maximum value of 300 units. - The PPF is represented by a green line, indicating the trade-off between producing Lumber and Rice. - Point B (150, 50) is marked, showing a specific production scenario where Canada produces 150 units of Rice and 50 units of Lumber. These graphs illustrate the concept of opportunity cost and how each country allocates its resources for producing two different goods, providing insights into potential advantages and strategic decisions in trade.
# Production and Labor Allocation in Malaysia and Canada

## Settings

### Production Possibilities

- **Malaysia**: 
  - Lumber: 280 ft³
  - Rice: 70 tons

- **Canada**: 
  - Lumber: 100 ft³
  - Rice: 300 tons

### Labor Allocation

- **Lumber and Rice Labor Allocation (0–100%)**:
  - Malaysia (Point A): 50% for lumber, 50% for rice
  - Canada (Point B): 50% for lumber, 50% for rice

## Calculations

### Initial Production

- **Malaysia**:
  - Lumber: 140 ft³
  - Rice: 35 tons

- **Canada**:
  - Lumber: 50 ft³
  - Rice: 150 tons

- **Total**:
  - Lumber: 190 ft³
  - Rice: 185 tons

### New Production

(No change from initial production)

- **Malaysia**:
  - Lumber: 140 ft³
  - Rice: 35 tons

- **Canada**:
  - Lumber: 50 ft³
  - Rice: 150 tons

- **Total**:
  - Lumber: 190 ft³
  - Rice: 185 tons

This comparison illustrates the production capabilities and labor distribution between Malaysia and Canada for lumber and rice, based on equal labor allocation in both countries.
Transcribed Image Text:# Production and Labor Allocation in Malaysia and Canada ## Settings ### Production Possibilities - **Malaysia**: - Lumber: 280 ft³ - Rice: 70 tons - **Canada**: - Lumber: 100 ft³ - Rice: 300 tons ### Labor Allocation - **Lumber and Rice Labor Allocation (0–100%)**: - Malaysia (Point A): 50% for lumber, 50% for rice - Canada (Point B): 50% for lumber, 50% for rice ## Calculations ### Initial Production - **Malaysia**: - Lumber: 140 ft³ - Rice: 35 tons - **Canada**: - Lumber: 50 ft³ - Rice: 150 tons - **Total**: - Lumber: 190 ft³ - Rice: 185 tons ### New Production (No change from initial production) - **Malaysia**: - Lumber: 140 ft³ - Rice: 35 tons - **Canada**: - Lumber: 50 ft³ - Rice: 150 tons - **Total**: - Lumber: 190 ft³ - Rice: 185 tons This comparison illustrates the production capabilities and labor distribution between Malaysia and Canada for lumber and rice, based on equal labor allocation in both countries.
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